Multiannual Financial Framework 2014 2020 New Development Cooperation

Multiannual Financial Framework 2014 -2020 New Development Cooperation Instrument 11 th European Development Fund 1

v Multiannual budget = 5 headings for 7 years: (1) Smart and Inclusive Growth; (2) Sustainable Growth: natural resources; (3) Security & citizenship; (4) Global Europe; (5) Administration v 70 Regulations to be adopted by Council & EP v Timing of negotiations v Before end 2012: financial volumes v Before end 2013: adoption of Regulations

Major objectives of EU external action v Promote EU values v Invest in EU’s Neighbourhood and underpin our commitment to Enlargement v Support EU interests abroad v Enhance external projection of internal policies to better address global challenges v Contribute to the eradication of poverty v Demonstrate solidarity with people facing disasters v Strengthen international security

Responding to a new context v Structure / instruments mainly continue from current MFF v But adapted to changing world & changing EU v New opportunities of the Lisbon Treaty & the EEAS v New Partnership Instrument to promote EU interests v Common implementing regulation to streamline & simplify implementing rules for all instruments

Increasing the efficiency and impact of external spending v Greater strategic focus (differentiated approach) v Improve the architecture of instruments v Increase flexibility v Simplify multiannual programming v Reduce dispersion of activities v Promote Aid effectiveness

Budget per instruments (in current prices) v Pre-accession instrument 14, 110 M€ v European Neighbourhood Instrument 18, 182 M€ v Development Cooperation Instrument 23, 295 M€ v Partnership Instrument 1, 131 M€ v Instrument for Stability 2, 829 M€ v European Instrument for Democracy & Human Rights 1, 578 M€ v Instrument for Nuclear Safety Cooperation 631 M€ v Instrument for Greenland 219 M€ v European Development Fund (outside Budget) 34, 276 M€ v TOTAL 6 96, 251 M€

Main innovations “Global Europe” (Heading IV), DCI & EDF 7

Differentiation v Target resources where they have greatest impact v Under DCI: v 19 countries able to generate significant own resources will be graduated from bilateral assistance v Those countries are still eligible for regional cooperation & thematic programmes v Criteria for allocation of funds: partner countries' needs, capacities, commitments & performance, & potential EU impact

Concentration v Avoid sectoral fragmentation v Higher impact of EU aid by concentrating resources on a limited number of sectors v Under DCI: v Maximum of 3 sectors per country for geographic programmes v Common areas of cooperation established in accordance with the Agenda for Change

A more flexible programming process v More coherence & aid effectiveness: alignment to partner countries & joint programming v Under DCI: v CSPs are not mandatory when alignment with national development plans v CSPs may be replaced by Joint Framework Documents v More flexible programming process for countries in fragile, crisis & post-crisis situations

Mutual accountability in allocating & disbursing funds v Human rights, democracy & good governance v Enlargement & neighbouring countries: assistance more closely linked to progress in implementing reforms v Developing countries: mutual accountability in respect of commitments & the fulfilment of objectives as agreed

Blending of grants & loans v EU member states' public funds are heavily constrained v Combine grants with additional flows (such as loans and risk capital) to gain financial & qualitative leverage & increase EU development policy impact v Allows to finance large infrastructure projects which would otherwise be too costly for single donors

Simplified rules v Reduction of administrative burden v Harmonisation through a horizontal legislative instrument (Common Implementing Regulation) Stronger involvement of the EP v Use of delegated acts v Improved democratic scrutiny over the European Development Fund

DCI: Objectives, scope and structure v DCI adapted to changing world & new EU policies including the “Agenda for Change” v Poverty reduction remains the main objective, but new focus on human rights, democracy & governance & inclusive & sustainable growth v Measured by relevant indicators (MDGs & other indicators agreed by the Union & its MS) v DCI funding increases by 19% (2011 prices)

Scope I Geographic programmes (bilateral, regional & continental) v Funding € 14 billion v Regions Asia, Central Asia, Latin America, Middle East & South Africa v Bilateral 27 countries (upper MICs & countries with 1% or more of global GNI are not eligible, except Cuba & South Africa) v Regional 46 countries (including the above 27 countries) v Areas 3 sectors aligned to national strategies v ODA 100% DACable

Scope II Thematic programmes v Funding € 8. 3 billion v Regions All third countries except industrialised & pre-accession v Themes Global Public Goods & Challenges (€ 6. 3 billion): human development, climate change & environment, sustainable energy, food security & sustainable agriculture, migration & asylum Civil Society Organisations & Local Authorities (€ 2 billion) v ODA 10% flexibility over DACability

Scope III Pan-African Programme v Funding € 1 billion v Regions Countries, Territories & Regions covered by the Joint-EU Africa Strategy v ODA 10% flexibility over DACability

Total 23. 3 bn€ (Annex VII)

11 th European Development Fund v Based on Cotonou agreement: cooperation with 78 ACP countries v Funding: € 34. 3 billion v Internal Agreement: v First of various legal texts forming the EDF v To be ratified by all MS v Only covers the broad financial envelopes v No major modifications compared to the 10 th EDF 19

v Cooperation with ACPs & OCTs remains outside the EU Budget v Further alignment of MS contribution keys with budget keys v Inclusion of new elements from the Cotonou revision v Elements on programming & implementation at a later stage: v implementation of EU development policy principles (“Agenda for Change”) v differentiation will apply while respecting the provisions of the Cotonou Agreement 20